What Is the Financial Advisor’s Designation?
Your advisor’s designation can tell you a lot about their background and expertise. Some of the more common financial planning designations include Chartered Financial Consultant (ChFC), Certified Public Accountant (CPA), Chartered Life Underwriter (CLU), Certified Financial Planner (CFP), or attorney (JD), among others. These indicate backgrounds in finance, accounting, business, law, and insurance.
Remember, though, that background is only one aspect of a planner.
For example, you might naturally assume that CPAs have greater background in income tax than other professionals. But that’s primarily due to their experience, not their CPA designation. Did you know that the CLU exam has more questions about taxation than does the CPA exam?